THE share market was higher at noon, led by gains in the resources and banking sectors.
At midday (AEDT), the benchmark S&P/ASX200 index was 31.9 points higher, by 0.67 per cent, at 4817.9 points, while the broader All Ordinaries index had risen 30.2 points, or 0.62 per cent, at 4918.3.
On the ASX 24, the March share price index futures contract was 29 points higher at 4799 points, with 12,646 contracts traded.
CMC Markets market analyst Ben Le Brun said the market was seeing gains across the board.
"The banks are again doing very well and its nice to see some of our miners in positive territory," Mr Le Brun said.
There were no stocks on the S&P/ASX20 in negative territory at noon.
Amongst the major banks, Westpac was up 14c at $22.94, ANZ gained 12c to $23.78, and NAB was 17c higher at $24.78.
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Commonwealth Bank was up 39c at $52.71 after announcing it had $199 billion in funds under administration at December 31, a2 per cent rise in the December quarter.
The major miners were stronger, too. Rio Tinto was up 95c, or 1.12 per cent, at $86.06, BHP had gained 32c at $45.24, and Fortescue was 10c higher, or 1.52 per cent, at $6.70.
Mr Le Brun said the market had reacted positively to the consumer price index (CPI) figures released by the Australian Bureau of Statistics today.
Australia's inflation rate slowed to 0.4 per cent in the December quarter, for an annual rate of 2.7 per cent, official data showed.
"(The share market has) rallied quite strongly since then," Mr Le Brun said.
"Looking at the market reaction, you would have to say it's two surprises within the space of a day, with the producer price index (PPI) and the CPI, so it looks as if the market has reacted quite positively to it."
The Producer Price Index (PPI), released yesterday, showed prices at the final stage of production rose 0.1 per cent in the December quarter, compared with economists' expectations of around 0.5 per cent.
The airlines were mixed at 12.12pm. Virgin Blue Holdings was the worst performer on the S&P/ASX200. Its shares were 1.5c lower, or 3.53 per cent, at 41c, after announcing it expects first half net profit to be down more than 50 per cent, due to the floods, a slowdown in consumer spending and disruptions to its check in system last September.
Qantas was down 2c at $2.45, Regional Express Holdings was steady at $1.12, and Air NZ was 1.5c higher, by 1.4 per cent, at $1.11, after analysts said its acquisition of a chunk of Virgin Blue last week would diversify its income.
Miners give shares a boost1 big trade led to market plunge
